Yat Shi Dan Closed 29 Stores Last Year, YGM Garment Business Lost 92 Million 790 Thousand

With the British referendum deciding to leave the European Union, the political and economic impact has been shaking the UK and the rest of the world.

Brand Aquascutum

Today's situation is also facing more uncertainty than Burberry.

As a twin brother, Burberry is also a traditional luxury brand in Britain.

It has done so well, but its performance has been in trouble in recent years. The YGM Trading Co., Ltd., a company at the end of last year, said it was cautiously assessing its impact on the group's retail and wholesale business and investment properties in the UK.

Affected by the weakening of the fashion retail market in the Greater China region, YGM employees decreased by 300 last year. Yam is the most important clothing business in YGM. Last year, 29 stores were shut down, and 27 in the mainland of China. The group said it would face a difficult market environment in the Greater China region in the coming years.

In 1970, it became the Hong Kong listed companies's YGM. In 2012, it acquired 15 million of the business and assets of the company and became the global controller of the brand.

YGM is mainly engaged in retail and wholesale brand clothing, leather goods and accessories. It has MICHEL RENE, RENE, Aquascutum, French brand Guy Laroche and Charles Jourdan Zhuo Dan, USA brand Ashworth Yazi Wei and Swedish brand J.Lindeberg.

By the end of the 12 months of March, YGM lost 87 million 871 thousand yuan from profit to 81 million 95 thousand yuan in the same period last year. The turnover dropped 18.7% to 18.7% yuan, gross profit fell 23.6% to 525 million yuan and the gross profit margin dropped to 62.5% from the same period last year.

Among them, the sales volume of garment sales dropped by 19.8% to HK $775 million 930 thousand, a loss of $92 million 798 thousand and a profit of 35 million 505 thousand yuan in the same period last year.

YGM owns the global trademark rights of Guy Laroche and apple. Last year, the revenue from concessionary trademarks dropped by 10.1% to 74 million 417 thousand yuan.

In the UK, retail sales and wholesale business rose 23.8% last year to 12 million 222 thousand, but it is still losing money. In a weak market environment, sales in the Greater China region dropped by 24.7%.

As the rental shops continued to rise, the group said it would continue to expand its branch network cautiously.

YGM has issued a profit warning at the end of March, pointing out that the retail market of group business has shrunk, especially in the Hongkong and China market, resulting in a marked decline in retail sales and wholesale sales of garments, leather goods and clothing. In addition, store rentals and other occupancy expenses are still high, which is suppressing profitability. The share price of the company has fallen by 50% in the past year, and its market value is currently about HK $670 million.

For the uncertainty of Britain's luxury brand brought to Europe, analysts say that the brand needs to adapt to the economic, political and consumer changes brought about by Britain's de Europe, but one thing is for sure: British luxury brands should now focus on the brand's own tradition and technology than before, in order to stand out in the fierce competition.